Svenska Spel operating profit decreases 49% for Q1 2024
A number of costs within the business had a negative effect on results.
Svenska Spel has released its interim report for the first quarter of 2024, underlining a mixed set of results for the group.
The net revenue of the group reached SEK1.96bn ($0.18bn) during the quarter, a slight decrease of 1% year-on-year, for which Svenska Spel has pointed to the restructuring within the Casino Cosmopol and Vegas business area.
Looking closer at revenue, net gaming revenue was down by 32% for the Casino Cosmopol and Vegas business area to SEK 169m, affected by the major restructuring of Casino Cosmopol, closures of Casino Cosmopol in Malmo and Gothenburg, and the reduced opening hours at the remaining casino in Stockholm.
The sport and casino business area also saw a decline in its revenue, by 3% to SEK 549m, which has been attributed to a worse outcome for the pool games.
Online business growth represented a positive for the Swedish operator during the quarter, increasing by 6% compared to the same period last year to a total of SEK 1.09bn, and this accounted for 56% of the group’s revenue during the quarter.
The Lottery division, known as Tur, also recorded a positive quarter with net gaming revenue going up by 6% to SEK1.24bn. This growth was driven by Eurojackpot and the continued sales growth of the game Triss.
Operating profit in the first quarter of the year, however, took a 49% hit, going down to SEK 310m. Svenska Spel has said the aforementioned costs during the quarter, such as the liquidation of the casinos in Malmo and Gothenburg, restructuring costs linked to the review of the group and a penalty fee which they had to pay, have contributed to this fall.
At the start of this month, Svenska Spel appointed Gustav Georgson as its new Head of Community Relations and Public Affairs.
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